Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

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Poly Horizon, located in the heart Epping, secured the sale of 82 percent of the first released 235 apartments.
In its first residential project in Sydney, Poly Horizon had over $165 million in sales transacted by midday Saturday.
A three bedroom premium apartment with sweeping views of the Sydney CBD and North Sydney skyline for $1.52 million was the highest sale of day. 
Poly’s marketing director Philip Best said the large majority of the purchasers in Poly Horizon were local buyers and owner occupiers.
“Poly Horizon also attracted a number of savvy investors who were looking to secure an apartment at comparatively competitive prices that provided strong long-term growth prospects.”
“Poly’s global presence, our 20 years of experience in property development and the great pride we take in ensuring the highest quality of the design and delivery of our projects, proved an added incentive for purchasers," he said.
Designed by architects PTW, Poly Horizon comprises 501 apartments across three towers, two at 22 and 21 storeys in height and one at seven storeys.
The project also comprises over 1,000sqm of ground-floor retail that will feature a proposed childcare centre, a children’s playground area as well as a number of cafes and convenience retailers and a large podium courtyard.
Located 300 metres from the recently upgraded, Epping Train Station and minutes from the M2 motorway, Poly Horizon enjoys excellent access to major shopping centres, local schools and universities as well as the Sydney CBD.
The first project stage release of Poly Horizon has prices for a studio start from $420,000 and includes one-bedroom + study apartments starting from $550,000, two-bedroom apartments from $820,000 and three-bedroom apartments with car parking from $1.06 million.
For more information, <a href="https://www.polyhorizon.com.au/">click here</a>.
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jonathanchancellor-7SQnKwU6yx

Poly Horizon at Epping secures 82 percent sales success

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It was Sydney's time in the auction spotlight as the busiest capital city auction market, given Melbourne's holiday long weekend distraction.
There was a jump back to an above 70 percent clearance rate for Sydney to boot. 
An original condition Curl Curl fibre cottage (above), which was set to take a starring role in the 2004 film Eucalyptus, captured the enthusiastic spirit when sold at $1.933 million at its onsite auction.
The 1940's house missed its chance in the spotlight given the cancellation of the film adaption of the Murray Bail book, but its Ray White agents secured $213,000 above reserve.
Some 11 registered bidders sought the rare offering as the <a href="https://raywhitefreshwater.com.au/nsw/curl-curl/1429265/" target="_blank">40 Bennett Street property</a> had last traded for £3,500 in 1953.
Sitting on 700 sqm of level land, the original cottage has three bedrooms and a sunroom, all a short walk to the beach. 
With 680 Sydney auctions there was a 72 percent, up on last week's dip to 68 percent.
Sydney’s strongest performing sub-regions were Ryde with an 86 percent success rate, followed by the Eastern Suburbs at 84 percent and Inner West at 78.6 per cent. 
South of Sydney the childhood Kiama home of the Oscar winning Hollywood fashion designer Orry Kelly, sold at auction.
It was just the 1880s cottage, not the block of land.
It fetched $1000, and is now set to be relocated to a Jamberoo farm, nine kms inland. 
The vendors who plan to rebuild on the block saved themselves around $30,000 in demolition fees.
Transportation of the period gem, two bedroom cottage with high ornate ceilings, polished floorboards and stained glass windows, was estimated at about $30,000.
Kelly, who had grown up in the home in the early 1900's, won three Oscars for his costume design in An American in Paris (1952), Les Girls (1958) and Some Like It Hot (1960). 
With Monday a public holiday for four out of the eight states and territories, the week saw 1,426 auctions held across the combined capital cities, substantially lower than the 2,304 held last week.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.23.28%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.23.28%20AM.png" alt="">
 
The combined capital city clearance rate softened this week, down from 68 percent last week to 66 percent, pulled lower by softer clearance rates in Brisbane (44 per cent), Perth (46.7 per cent) and Tasmania (33.3 per cent).
CoreLogic RP Data noted one year ago, the weighted average clearance rate was 77 per cent.
The nation's top auction sale was a triplex Drummoyne development site on Sydney Harbour that fetched $11 million.
It was downsizers who completed at Cremorne Point for a three-bedroom triplex garden apartment that fetched $4,065,000 in the highest Sydney single abode price.
The auction saw 10 parties raise their bidding cards after the $3.1 million opening bid. There had been a $3 million to $3.3 million auction price guide.
Melbourne's priciest sale was a $3.35 million Preston development site, while 46a Kinkora Road, Hawthorn was the dearest house sale at $2.83 million, at well above reserve.
The renovated four bedroom, two storey 1986 home had sold at $2,071,000 in March two years ago, with just a minor refurbishment inbetween sales.
A Victorian era Hawthorn home at 5 Yarra Street was passed in on a $4.4 million vendor bid, after the one buyer bid at $4.35 million. It had sold in spring 2014 at $4.36 million, suggesting little if any price growth.
Only 414 Melbourne auctions were held with the 70 percent successrate, a slight decrease on the 72 percent last week. Melbourne’s North West was the best performer, with 80 percent of reported auctions successful followed by the Inner South at 79 per cent.
A three bedroom home at Melton West was the nation's weekend's cheapest sale at $261,000, narrowly edging out a $262,500 sale in Loganholme, set mid-way between Brisbane and the Gold Coast. The basic two bedroom Queenslander had last sold in 1986 for $41,500.
 
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jchancellor-FAypfDUnLy

Curl Curl cottage stars in Sydney weekend auctions

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GUEST OBSERVER
Once upon a time, chicken was a luxury few could regularly afford. It was a rare meal reserved for special occasions.
Yet since 1965 the per-capita annual consumption of chicken meat in Australia has increased ten-fold from 4.6 kilograms per person in 1965 to 44.6 kilograms in 2012.
The retail price of chicken per kilogram has decreased steadily in real terms from around A$9.67 in 1986 to A$5.67 in 2009. The arrival of Kentucky Fried Chicken in Australia in 1968 coincided with rapid increases in consumption. Today, Australians consume more than 600 million chickens per year.
The vast majority is produced in intensive “broiler” farms. How does chicken production and consumption on such a scale affect the foodbowls on the outskirts of our cities?
Intensive chicken farms need to be within about one hour of processing sites. Farms also need to be close to feed supplies and hatcheries, as they are run as highly integrated systems.
Partly because of this, the chicken meat industry in Victoria is concentrated within about 200 kilometres of Melbourne. Similar patterns occur in other Australian regions.
As the industry has sought efficiencies of scale, the size of farms has increased. Whereas farms of the 1970s might have housed 10,000 chickens, they now routinely hold 80,000 to more than one million chickens, producing five batches of chickens per year. Yet as producers have grown, the numbers of suitable urban fringe spaces – close enough to processing plants, but far enough from neighbours and sensitive land uses – are dwindling.
One reason is the growth in popularity of peri-urban areas to live in. “Counter-urbanisation” or “tree-changing” has been underway since the 1970s. Whether in Germany, the US or the Netherlands, it seems rural and peri-urban residents have little desire to live near a “monster chicken factory”.
In a recent paper we analysed 59 planning appeals related to broiler farms in Victoria between 1969 and 2013. Concerns about the farms have included odour, noise, dust, vermin, truck traffic, impacts on tourism, and water use and pollution.
<a href="/images/2016/03/14/image-20160224-16425-1lijx2i.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/image-20160224-16425-1lijx2i.jpg" alt="">
Broiler farm planning disputes appear to channel more intractable issues than odour control. It is possible that, on some level, having one million chickens not smell is unsettling in its own way.
As more chicken meat is produced, and in ever more technologically intensive ways, conflicts over farm applications inevitably unlock community disquiet about factory farming. The allowable forum for legitimate opposition, however, is narrow.
Intensive farming is often simply inconsistent with community expectations. The “unknowns” of industrialised agriculture are normally hidden from view in bucolic images on food packaging, and in the marketing of rural real estate as a “lifestyle” choice. Responses to the reality of broiler proposals – however technically well planned – sometimes seem rooted in the loss of this comforting, romanticised view.
In Victoria, the solution has been to regulate away the noise, smell and dust of a farm, mandate separation distances and even set aside areas with clear “rights to farm” and those with rights to “the good life”. The recent announcement of an inquiry in Victoria into the industry has a strong focus on resolving conflicts through siting and separation.
Yet the use of such an approach in Victoria has raised concerns about creating “sterilised” regions where no uses but industrial farms are permitted. Opponents to industrial farms also express concerns that proponents exploit loopholes and that a codified buffer distance privileges intensive farms rather than resolving conflicting land use issues.
On the other hand, less control arguably generates more conflict, as in parts of Canada and Texas. There, industrial, corporate-run farming operations dominate vast, generally lower socioeconomic areas. But as farms expand, divisive neighbourhood battles are still fought out.
Our research indicates that the use of buffer spaces around farms, guidelines and rights can achieve only so much. Despite the presence of clear guidelines, a recent proposal for a 1.2 million-bird farm in Baringhup, near Castlemaine, has led to more than two years of planning dispute and may result in Supreme Court action.
Conflicts between opponents and proponents of intensive farming will continue in rural areas. Fanning the flames is the growing demand for low-priced chicken (and an ongoing chicken nugget price “war”).
Local governments and decision-makers in Australia remain under-resourced to deal with opposition to the increasing scale of broiler farms. By advocating for a new understanding of what a rural and an urban area “means”, planning is at the coal face for negotiating politically acceptable outcomes to such conflicts. Yet a look at the images used to market farm products reveals what an uphill struggle this is.
 
Elizabeth Taylor is vice chancellor's Post-Doctoral Research Fellow, RMIT University and can be contacted <a href="https://theconversation.com/profiles/elizabeth-taylor-97922" target="_blank">here</a>.
Andrew Butt is senior lecturer in Community Planning and Development, La Trobe University and can be contacted <a href="https://theconversation.com/profiles/andrew-butt-229215" target="_blank">here</a>.
Marco Amati is associate professor of International Planning, Centre for Urban Research, RMIT University and can be contacted <a href="https://theconversation.com/profiles/marco-amati-209638" target="_blank">here</a>.
All are authors for The Conversation
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Done like a chicken dinner: city fringes locked in battles over broiler farms

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GUEST OBSERVER
Agriculture in vogue: New commercial loans to the Agriculture sector hit 6-year highs in the year to January.
Lending: Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after falling by 5.2 percent in December. Total lending is down by 7.4 percent on a year ago – the biggest annual decline in 3ó years.
Trends: In trend terms lending was down 0.9 percent in January – the fourth consecutive fall. Lending was up just 2.1 percent on a year ago – the weakest growth in almost three years.
The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.
What does it all mean?
Aussie consumers and businesses remain cautious about taking on more debt. Interest rates may be at or near generational lows, but that is no guarantee of higher rates of borrowing. In fact, after running up over the past two years, new lending commitments seem to have hit a ceiling. Effectively borrowers are saying that’s enough for now. 
Leasing is in favour though as are loans taken out by consumers to buy new cars.
The interesting point for the Reserve Bank though is whether another cut in the cash rate would serve any purpose. Borrowers are cautious about taking on more debt. And lower interest rates compress bank margins, affecting profits and potentially investment, employment and shareholder returns.
Click to enlarge
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.58.38%20AM.png" alt="">
Mining has fallen from favour, to be replaced by agriculture sector. Loans to rural businesses over the past year were the highest in six years. The lift in lending coincides with renewed interest in the sector from overseas investors and expectations of stronger Asian demand for Aussie food and beverage products.
What do the figures show?
Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after a 5.2 percent fall in December. Lending had hit a 7ó year high in September. Total lending is down 7.4 percent on a year ago.
Housing finance: The seasonally adjusted measure of construction and new purchases fell by 4.3 per cent in January while alterations &amp; additions rose by 1.5 percent. Home loans are up 15.9 per cent on a year.
Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell by 2.5 per cent in January after falling by 8.8 percent in December. Revolving credit commitments fell by 2.2 per cent (-23.1 per cent in December). Fixed lending commitments fell by 2.5 per cent – the fourth straight decline. 
Business loans are down 16.3 per cent over the year.
Over the year to January, total business lending was $531.6 billion, up 7.4 per cent over the year. Lending rose most in Victoria (up 13.1 per cent) followed by Queensland (up 10.9 per cent), South Australia (up 9.4 per cent), NSW (up 7.8 cent) and Western Australia (down 13.2 per cent). No consistent data was available for other states and territories.
Personal finance : The seasonally adjusted series for the value of total personal finance commitments fell by 1.4 per cent in January after rising by 2.1 per cent in December. 
Revolving credit commitments fell by 1.6 percent and fixed lending commitments fell by 1.2 per cent.
Personal loans are down 8.1 per cent over the year.
Within personal fixed finance commitments,  loans for new cars were up by 1.0 per cent on a year earlier while loans for used cars were down by 2.4 per cent. Loans for residential blocks of land were down by 10.0 per cent on a year ago – the 14th  decline in 15 months.
Lease finance : Lending rose by 3.7 per cent in January and was up 18.8 per cent over the year.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.59.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.59.36%20AM.png" alt="">
What is the importance of the economic data?
Lending Finance  is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
What are the implications for interest rates and investors?
The slowdown in new lending runs counter to other indicators such as record dwelling starts, record tourism and strong employment growth. Still, it does accord with record car sales. Overall it appears that consumers and businesses remain happy to use their own funds to make purchases.
 <a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.00.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.00.30%20AM.png" alt="">
The Reserve Bank will maintain its ‘easing bias’ although it may publicly express doubts about the ability of lower rates to boost activity.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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Loans to rural sector at six year highs: Craig James

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GUEST OBSERVER
It’s reporting season, and over the past few weeks some of Australia’s biggest companies have been releasing information on how they’re travelling. 
These reports reflect key themes of how things are going in key sectors of the economy. 
Today we look at the banking sector.
The Australian banking industry is a classic economic ‘oligopoly’ with the so-called ‘Four Pillars’ or ‘Big Four’ (National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), ANZ and Westpac) dominating not only the banking sector but the whole financial sector and arguably the economy.
The big four banks account for over 25 percent of the market capitalisation of the ASX 200, and are valued at over $360 billion. In total, the four banks reported assets in 2015 of some $3.5 trillion or about 10 times the size of BHP and RIO combined, and profits for their latest financial year of over $30 billion between them.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/114178/width668/image-20160308-15110-odx4a3.png" target="_blank"> Click to enlarge</a>
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/114178/width668/image-20160308-15110-odx4a3.png" alt=""><a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
 
 
<h2>The risks in Australia’s banking system</h2>
In an oligopoly, the dominant players operate a very similar business model. This is true of the Big Four, which operate within a structure known as ‘universal banking’. Not only do each of these behemoths run a traditional retail and business bank, they also have wealth management (mainly retail superannuation fund management) and insurance subsidiaries. To complete the picture, each of the four runs a wholly owned bank in New Zealand, again dominating the banking system in that country. The banks operate throughout Australasia, often with competing branches (and valuable jobs) in each small town - Australia is ‘over banked’.
The risks of having one of the most concentrated banking systems in the world were outlined in 2012 by the International Monetary Fund (IMF), it warned that Australia’s banks had: “broadly similar business models and reliance on offshore funding leave them exposed to common shocks and disruptions to funding markets. Against a still worrying global environment, these risks will need to be closely monitored, particularly if the domestic economy slows sharply.”
Among the four banks, there is constant jockeying for prominence and any one time one bank climbs to the top of the pile. At the moment, the clear winner is CBA, largest by capitalisation, latest annual profits and staff employed with the lowest Cost to Income Ratio (CIR). Another winner is Westpac, the smallest by assets and employees but with an enviable CIR and Net Interest Margin (NIM) leading to excellent profit results. Meanwhile, NAB trails the others by profitability and with a low NIM and high CIR, will be likely do so for some time. Nonetheless, NAB is by any standards a very profitable company, if a bit overshadowed by the other banks this year.
It should be noted that not all banks report their financial results at the same time in a completely consistent fashion. However each quarter the banks are required to report their risk numbers to the Australian Prudential Regulation Authority (APRA), the banking regulator. These so-called APS 330 reports give a picture (albeit slightly murky) of where banks are taking risks and the size of those risks.
These numbers show that the banks hold roughly similar amounts of assets, so-called Risk Weighted Assets (RWA) and associated capital. Although Westpac, being slightly smaller, has about 10 percent less of each. This data shows Big Four banks are still predominantly lending institutions with about 86 percent of their Risk Weighted Assets (RWAs) related to credit.
While ANZ has a higher proportion of corporate and business lending than the others, about 23 percent of its credit (RWAs) relates to retail, mainly residential mortgage, lending. With a few notable exceptions, such as CBAs exposure to interest rate risks and NAB’s operational risks, the risk numbers are similar across the banks.
From an analysis of prior APS 330 reports (not shown), it appears that, although the RWAs for residential mortgages have increased slightly for all banks (mainly because lending has increased), the banking sector has not factored in much additional capital to cover the potential for the busting of a housing bubble.
The large Australian banks will in the next year face headwinds from a number of directions. First, any busting or even deflation of Australia’s real or imagined housing bubble will undoubtedly give the banks serious headaches.
Likewise, the end of the mining boom is already beginning to take its toll on mining companies, even the largest. If the gloom spreads, loans to the sector might be under pressure. Last, but far from least, banking scandals will definitely come to the fore this year especially market manipulation and product misselling.
<h2>Disruption from technology</h2>
Following the retreats of both NAB and ANZ from their respective overseas forays, it looks like the four banks are going to resemble each other even more as they are all embarking on strategies that target the same Australasian retail, mortgage and business markets. But there is at least one significant point of difference between the banks that might give a clue to potential shifts in future.
In banking, as in other industries, technology is critical. After an outsourcing deal that went sour, in 2008 the CBA board was forced (some say was brave enough) to embark on a complete refresh of its ageing IT systems, often called a Core Systems Replacement (CSR).
After some significant project blowouts, CBA eventually got the CSR to work and their annual profit numbers are beginning to reflect that success. Meanwhile, NAB is in the middle of its almost decade long CSR project (called Nextgen) and is constantly changing its management, which does not bode well for its completion in the near future. On the other hand, the new Chief Information Officer (CIO) of Westpac has denied that the firm needs a CSR, and has embarked on a much needed face-lift to the bank’s ageing systems.
After a number of attempts to change its core systems, the new management of ANZ have just announced that they are hiring an ex-Google executive to become its head of ‘digital banking’ - but to do what is still not certain.
Given the oft repeated fact that some 70 percent of IT projects fail, it looks like one or more of the banks are in for some big headaches over the next decade.
For this snapshot, the information is collected from the latest annual reports (2014-2015), except for CBA which reported its semi-annual numbers in February 2016. The risk figures are taken from the 2016 December quarter APS 330 reports of the banks to APRA, which are available at the banks’ websites.
Pat McConnell is honorary fellow, Macquarie University Applied Finance Centre, Macquarie University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/pat-mcconnell-13137" target="_blank">here</a>.
 
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Property 101: The housing bubble risk to the big four banks

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Australia is experiencing the biggest apartment development boom in its history — with an estimated 80,000 apartments under construction in our major capital cities.
There's another 117,000 approved or in the off-the-plan marketing phase, according to a recent CommBank Property Insights report.
The highest concentration of apartment completions in absolute terms, in the next two years, will be Brisbane and inner Melbourne, where as a result, owner occupiers and investors have been warned of the prospect of rising vacancy rates, reduced rental income and possible falls in property values. 
The broader geographic spread of Sydney completions across a large number of suburbs, together with a greater depth to the market, was likely to mitigate these risks, according to Kevin Stanley, head of property strategy and research at the bank.
He says Sydney stands out nationally as a city with the most even distribution of apartment developments across the metropolitan area, which will help boost their occupation. He stressed the importance of access to amenities and transport. He says Sydney's 550 new proposals will typically have 160 apartments.
His list of top suburbs for nearing completions of apartments has Mascot heading NSW with around 1400 completions likely during 2016. Next busiest was Burwood at 650; Wenworth Point with 530 and Burwood scheduled for 500 new flats. 
He also did the same for 2017 which sees an anticipated 2100 unit completions in the Sydney CBD and 1500 in Parramatta.
Stanley noted while metropolitan Sydney accounts for 38 percent of Australia’s expected population growth by 2017, the city has just 33 percent of the apartments proposed or under construction nationally.
Our higher land prices and more restrictive planning laws are impediments to the apartment development sector, and look like continuing Sydney's undersupply of housing.
"This situation is also pushing upward pressure on pricing," he concludes.
Unlike Melbourne at 25 per cent, the Sydney CBD accounts for just seven per cent of the pending Sydney metropolitan total.
Sydney's largest sub-region for future apartments is the most distant from the city — with Western Sydney constituting around 23 per cent of forward supply including Liverpool and Carlingford. 
Ofcourse the analysis anticipates supply is likely to adjust to a more sustainable level should events dictate.
Some projects may not get approval, other's wont get bank finance and some developers will delay their projects depending on where they see the property cycle.
I recall Hegney Property Group chairman Gavin Hegney saying apartments are always in over-supply or under-supply because of the "lumpy nature" of the market.
While a housing estate can release or hold back land allotments in stages, you can’t do that with an apartment tower, he noted.
As more Sydneysiders embrace apartment living, I'd suggest the CommBank report ought be the backdrop to your own solid research around the markets of interest to ensure your decisions whether buying or selling, now or later, comes with data, local insights and your own personal aspirations.
This article was first published in the Saturday Daily Telegraph. 
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The biggest apartment boom in Australia's history: CommBank 

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Pouf! In case it wasn't obvious, that was the sound of the mining construction boom vanishing into a cloud of coal dust. Let's take a run through recent Lending Finance figures to see what we can learn.</div>
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 Total lending softens again 
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<div>The data for January showed that total lending has pulled back a little from record highs in trend terms. The seasonally adjusted lending finance result in September 2015 had been the highest in 7.5 years, but January saw another weaker month of lending recorded, in part due to the dampening of property investor loans.</div>
<div> </div>
<div>In seasonally adjusted terms total lending was down by -2.9 per cent from December, with the trend inching down over the past four months from a high of $72.9 billion to $71.3 billion. In trend terms total lending is now only +2.1 per cent higher than one year ago, and appears to be softening.</div>
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<div><a href="/images/2016/03/14/A3.jpg" target="_blank">Click to enlarge</a></div>
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<div>One of the key narratives over the past six months or so has been that while property investor loans have been stymied, owner-occupier lending has by and large ramped up to take its place. Indeed this has happened to the extent that APRA is now beginning to sense that some of these loan reclassifications might just be a bit fishy. Owner-occupier commitments pulled back a bit in January, although major renovation activity is now increasing at last. <div>Yet overall trend owner-occupier housing commitments of $21.6 billion are an exceptionally strong +18.8 per cent higher than one year ago. </div>
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<div>Business lending pulled back by a seasonally adjusted -2.5 per cent in January, reflected by the commercial finance trend in the chart below, the softer figures in part reflecting a huge year-on-year decline in commercial loans to the mining sector, although agriculture finance has been rising solidly since 2013. Lease finance, which represents only a small part of total lending finance, increased by 3.7 per cent in January. Here's the summary chart, presented in trend terms:</div>
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<div><a href="/images/2016/03/14/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/14/A4.jpg" alt=""></div>
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Industry &amp; state trends Looking at commercial fixed loans by industry shows that with a couple of mega projects now dropping off the annualised data, commercial financing to the mining sector has shrunk by more than a quarter. Fortunately for the economy at the national level, mining represents only a relatively small part of the total and a number of other industries have helped to pick up the slack, although this is unlikely to be much compensation for the struggling regions. At the state level, Victoria (+13 per cent), Queensland (+11 per cent), and New South Wales (+8 per cent) have all enjoyed a solid uplift in commercial finance over the last year in rolling annual terms, but the other resources states of Western Australia and the Northern Territory have seen activity decline.
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<div><a href="/images/2016/03/14/A6.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/14/A6.jpg" alt=""></div>
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<div>Investor lending stymied</div>
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 As noted above, property investor lending has been dampened, to be replaced by a rise in home loan activity. 
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<div>Nowhere has this been more so in evidence than in Sydney where home loan commitments have exploded higher, mirroring a corresponding decline in investor loans. </div>
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<div>The property investor loans figures are not seasonally adjusted, and so are presented below on a rolling annual basis.</div>
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<div>Lately the best performing states for property investment loans have been Queensland, Tasmania, and South Australia, not least because these states did not experience the great boom that New South Wales and Victoria did.</div>
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<div><a href="/images/2016/03/14/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/14/A1.jpg" alt=""></div>
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<div>
<div>On the other hand investor activity in the Northern Territory continues to plummet back to monthly volumes last seen five years ago. </div>
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<div>The rolling annual total of property investor loans in the "Top End" has declined by 29.4 per cent in the past year alone, to now be down by 33.9 per cent from the September 2014 peak.</div>
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<div><a href="/images/2016/03/14/A2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/14/A2.jpg" alt=""></div>
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There is a significant dwelling price correction in the post for Darwin, with rents also having fallen sharply. The wrap <div>Overall, January proved to be a softer month for lending, as might have been expected following on from Wednesday's housing finance data.</div>
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<div>These figures present further evidence of the conspicuous and precipitous decline in mining construction. Total lending finance has eased over the past few months, although the headline figure remains strong enough in historical terms.</div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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Piff, Paff, Pouf the mining construction boom vanishes: Pete Wargent

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A recent survey of around 321,000 first time buyer households has found the biggest barriers to buying are high house prices (52 percent) and finding the right property (24 percent).
The latest report by consulting firm Digital Finance Analytics, The Property Imperative 6, featured results from the March 2016 DFA Household Survey and  noted 60 percent of households will need to borrow more than they can currently obtain to transact, whilst 62 percent of households will consider using a mortgage broker to assist with the finance arrangements. 
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.18.04%20PM.png" target="_blank">Click to enlarge</a>
 
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.18.04%20PM.png" alt="">
The survey found more first time buyers in Sydney are considering or have bought a unit, with the preference for a house dropping in Melbourne and Brisbane.
DFA founder Martin North said the traditional wisdom is that first time buyers are sitting out of the property markets, because prices are high, loans harder to get, and confidence is falling. 
"However, one of the most significant developments surrounding first time buyers is that many more are now going direct to the investment sector," he said.
"The number of first time buyers are still sitting at around 13,000 a month in total, still well below the peaks in 2009. Our surveys indicate strong FTB investor appetite. The changed underwriting requirements however are having an impact. 
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.16.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.16.50%20PM.png" alt="">
 "There are a number of drivers to this trend. First, most first time buyers were unable to afford to purchase a property to occupy, in an area that made sense to them and were being priced out of the market. 
"Next, many were anxious they were missing out on recent property gains, so decided to buy a less expensive property (often a unit) as an investment, thanks to negative gearing, they could afford it. They often continue to live at home meantime, hoping that the growth in capital could later be converted into a deposit for their own home – in other words, the investment property is an interim hedge into property, not a long term play. 
"Some are also teaming up with friends to jointly purchase an investment, so spreading the costs. In fact, about one third who purchased were assisted by the Bank of Mum and Dad, and would consider an investment property by accessing their superannuation for property investment purposes, a bad idea in our view." 
"First time buyers are split between looking for a house or a unit (in Sydney more are looking for a unit). A greater proportion (21.5 percent) this time were simply not sure what to buy, or where to buy, a rise from 4 percent in 2013. 
"Putting this together, we conclude that first time buyers are reacting to the current house price boom in logical ways. They are however being infected by the notion that property is about wealth building, rather than somewhere to live. This notion, which served previous generations quite well (once they were on the property escalator), may be tested if interest rates rise later, or property prices fall from their current illogical stratospheric levels," he said.
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.15.17%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.15.17%20PM.png" alt="">
 
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<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%202.13.27%20PM.png" alt=""> 
For more information, <a href="https://www.digitalfinanceanalytics.com/blog/latest-dfa-household-survey/" target="_blank">click here</a>. 
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Strong first time buyer investor appetite: DFA's Martin North

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First home buyers are tipped to be among the purchasers of the first project stage release of Poly Horizon in Sydney's Epping this weekend given prices for a studio start from $420,000.
The first stage release, 235 apartments launches Saturday March 12 and includes one-bedroom + study apartments starting from $550,000, two-bedroom apartments from $820,000 and three-bedroom apartments with car parking from $1.06 million.
The $200 million mixed-use precinct at 28 Cambridge Street, Epping, will comprise of 501 spacious apartments across one 22-storey tower, one 21-storey tower and a third low-rise tower.
CBRE residential projects senior director Tim Rees said the development will also appeal to young families with a proposed childcare centre in its ground floor and is within close proximity to local primary schools, high schools and universities. 
“Poly Horizon is only a short drive to major regional shopping destinations including Top Ryde, Chatswood and Macquarie Centre," he said.
“Located only 300 metres from the recently upgraded Epping train and bus stations, the project also enjoys excellent public transport access to the commercial hub of Macquarie Park, the sparkling Northern Beaches and Sydney Olympic Park. And with the M2 Motorway moments away, residents will be able to access the Sydney CBD within a 25-minute drive.
“We anticipate significant sales during the launch phase, particularly among local buyers who are familiar with the convenient lifestyle offering of Epping, as well as the outstanding views the project will capture.”
For more information <a href="https://www.polyhorizon.com.au" target="_blank">click here</a>. <a href="https://www.polyhorizon.com.au" style="line-height: 1.3em;"> </a>
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Poly Horizon, Epping, releases first stage

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Gentrification can be an academic discussion but identifying when it takes hold, and quantifying its impact on property is often best left to professionals that spend their days in the suburbs being felt, say Herron Todd White in their March 2016 update.
The term was coined in 1964 by British sociologist Ruth Glass when referring to the changes she observed in the social structure and housing markets in certain areas of inner London.  
HTW took a detailed view of gentrification hotspots.
Certainly staying ahead of the gentrification curve can prove profitable to investors, say HTW.
The Gold Coast
The Gold Coast is a rising market, according to latest HTW residential property clock. 
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%201.01.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%201.01.41%20PM.png" alt="">
The residential area loosely bounded by Queen Street to the north, Bauer Street to the east and Chester Terrace to the west is in the southern fringe of the Southport CBD and has always been well regarded by the local market.
Its benefits are proximity to the commercial CBD, medical precinct and Broadwater Parklands with a good public bus service. It features wide streets with a mix of older character style dwellings and slightly dated semi-modern medium density low rise and townhouse style unit developments. However, the area has become dated with a loss of its former appeal and identity. 
The area has now been rezoned as Special Purpose by the Gold Coast City Council which allows more relaxed density and height building restrictions;
The precinct has recently added two light rail train stops within close walking distance providing easy commuter connection through to Surfers Paradise and Broadbeach to the south and through the CBD and onto the new Gold Coast University Hospital and Griffith University in Parkwood to the north. (Approvals have now been granted for Stage 2 to continue the line through to Helensvale and make connection with the Brisbane City/ Airport rail system);
Southport CBD itself is undergoing continuing upgrades including the introduction of its own China Town precinct, road upgrades and announced renovation of Australia Fair, one of the Gold Coast’s largest retail shopping centres. Southport has also secured the upgrade and expansion of a new aquatic centre in preparation for the 2018 Commonwealth Games and the surrounding Broadwater Parkland has and is undergoing continued upgrade;
In general, land values are pushing up as the Gold Coast expands mainly to the west and through the northern corridor making centrally located areas closer to the Broadwater such as Southport more desirable.
There has been keen development and investment in this residential precinct reflected in both single detached dwellings and low to medium rise investment. Some examples are: 
• The Rise Southport, a seven level 30 x 2-bedroom unit complex situated at 43 Lenneberg Street on a 1,016 square metre site which was completed in 2015. Units were reportedly sold by the developer very quickly in the range of $370,000 to $420,000.
• 18 Lenneberg Street, a circa 1900, renovated two level, 3-bedroom, 4-bathroom detached character dwelling (living area of 344 square metres and land area of 701 square metres) recently went to contract for $1.1 million. This is a signifcant sale as when the property sold in May 2014 for $850,000 it was reportedly in a slightly inferior condition.
Another highrise tower complex with 55 levels to be known as Brighton on Broadwater – Sundale is due to be completed by October 2016. Currently the developer is marketing the non-serviced units between circa $425,000 and $950,000 (subject to confirmation).
Entry-level investment can still be achieved in the subject precinct with say a typical 1970s basic two-bedroom, one-bathroom unit in the range of $270,000 to $300,000. A 3-bedroom brick and tile townhouse might cost an investor in the range of $390,000 to $440,000.
In the short to medium term HTW says that this area will continue to go from strength to strength. The area will continue to modernise with higher density developments replacing some of the older less desirable buildings blended with renovated and prestige character dwellings. 
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%201.03.25%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%201.03.25%20PM.png" alt="">
ISLE OF CAPRI, SURFERS PARADISE
This central popular residential area was originally developed in the 1970s and until recently was serviced by an older style shopping centre. This centre has recently been rebuilt, has a new tenant mix and has been well received by locals.
This locale has seen good growth in value levels lately which can in part be attributed to the improved retail facilities and also to its proximity to the new tram line.
35 Salerno Street recently sold at auction for $675,000. This is a deceased estate sale of a circa 1980s single level brick dwelling providing basic 2-bedroom, 1-bathroom accommodation (living area of 112 square metres). The sale represents entry level for a non-waterfront block here. The majority of value was in the land with the improvements having minor added value.
114 Amal Drive went to contract in February 2016 for $1.55 million. This is a 4-bedroom, 3-bathroom, 4-car garage dwelling in a mostly renovated condition with rear river frontage.
Unit 43 Raffles on Capri sold last year for $425,000. This is a modern style two-level townhouse unit within a security-gated complex providing 3-bedroom, 2 -bathroom accommodation and tandem carport. It last sold November 2013 for $365,000. 
With the population of the Gold Coast continuing to rise and demand for centrally located property in close proximity to facilities and the beach strengthening, this suburb can be expected to increase in popularity and value over the next five years. 
PALM BEACH 
Palm Beach on the southern Gold Coast is situated to the east of the Pacific Motorway, south of Burleigh Heads and Tallebudgera Creek and North of Currumbin, Tugun and Currumbin Creek. The eastern boundary of the suburb is approximately four kilometres of beach front with a number of homes, high-rise unit complexes and parklands having direct beach frontage. There are also a number of canals and lakes throughout the area. While this all sounds very appealing, in past years the area has had a bad reputation for being a lower class locality compared to a number of nearby and neighbouring suburbs such as Currumbin, Burleigh Heads and Mermaid Beach.
However, in recent years the area has been regenerated into a trendy, locals style beachside suburb with a vibrant cafe and restaurant culture and pristine beaches being two of the driving forces in the change for the area. On the back of this, there has been strong market demand for properties in the area. 
One of the main positive points in the marketplace was its affordability in relation to the neighbouring suburbs previously mentioned. 
However, on the back of this new wave of popularity and demand, prices have strengthened to a point where most of the Palm Beach residential market is now at historical peak values, some property types being circa 20% above pre-GFC prices. 
For example, 35 Coolibah Drive, Palm Beach sold for $485,000 in October 2007 when the Gold Coast market was last booming. The dwelling has since had minor upgrade renovations completed (estimated cost of approximately $50,000), and recently sold in September 2015 for $620,000. 
In a shorter space of time, 31 Twenty Fifth Avenue, which is an older asbestos beach shack on a 405 square metre allotment, sold in January 2014 for $480,000 and sold in inferior condition in 2015 for $530,000. The vast majority of the value is the land component with very minor added value for the improvements. 
Over the past 24 months, a large number of older style homes have undergone major renovations in order to modernise. In other cases, older style dwellings have been demolished to make way for modern housing and duplex units which are in very strong demand and attracting premium sale prices. There is also a select number of new beach front low rise and medium rise developments of good to prestige quality under construction or having been recently completed with amalgamation of beach front and highway front sites becoming popular, where viable. 
Entry-level housing towards the western side of Palm Beach is now in the vicinity of $500,000 and beach shacks in The Avenues closer to the beach are seeing prices in the high $500,000s to early $600,000s. 
The upper end of the housing market comprises canal front properties and can vary from the mid to high $1 million mark to beach front homes from $2.5 million plus. 38 Mallawa Drive sold for $1.667 million at auction in September 2015 and was then used as a Boystown Prize Home Auction. At the time, the sale price was considered very strong but the market has continued to improve since.
While the market is booming in Palm Beach at present, there is a good chance that market conditions will fluctuate over the next five to ten years. However, with the likely extension of the light rail network (from Broadbeach through to Coolangatta Airport) and continued redevelopment of properties in the area, the demographic of the area may improve and continue to be one of the stronger markets on the Gold Coast. 
 
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